Question

The question is from the textbook Inequality, Discrimination, Poverty, and Mobility Question 4, Chapter 15:

"Is there a healthy degree of intergenerational mobility in the United States or is the degree of intergenerational mobility distressingly low?"

Answer 1

United states is seen as the land of opportunities but real opportunity requires mobility across generations. Parental income has a greater influence implying lower level of income. Education also plays a stronger role in income distribution. Race affects mobility in middle and lowee part of the income distribution.

Intergenerational mobility for any individual is determined by two factors :

1.the amount of opportunities in the society

2.the rate of economic growth and associated change in the occupational structure

The more an individual socioeconomic status is determined by parents status, less opportunity will be there .The rate of growth is also related with intergenerational mobility because productivity growth is linked with increase in wages

The idea of US being land of opportunities relies on the idea that intergenerational income mobility exist in United States but not that high as expected by others.It is seen that adult sons and daughters often look after parents while choosing occupation and not on the basis of chance.

In the present scenario it is seen that playing field has become more important in the United States Socioeconomic origins today are less important than it was earlier They have little or no importance for individuals who have college degrees The growth in access to education plays a important role in getting more opportunities. Family plays a role of shaping economic outcome of a children Now it is no longer important that from which family background a person comes from rather education signifies social status. It should be remembered that increase in intergenerational mobility in the firm of greater circulation mobility would not be expected to increase the income of younger generations. It merely frees the individual to succeed or fail on their own having no influence of their socioeconomic background. Only the structural mobility has a positive impact on income increase.

Thus the perception that younger generation is doing good as their parents is not true as it has been earlier linked with their static occupational structure children today are free to move beyond their roots. Equity of opportunity increased. Negative cases are out seen in context of privileged groups who are moving downward due to an increase in circulation mobility. While those who are grown in modest circumstances are likely to move upwards. Children in the upper middle part of the conditional distribution show rhe smallest degree of intergenerational persistence while upper and low income group depends on parental income

So the intergenerational mobility exist in United states bit less than expected. Education can be seen as a motivating factor in this regard.